Authorities on alert over the explosion of financial scams

With an annual loss estimated at more than 500 million euros, the phenomenon of financial scams is hitting a growing number of citizens, particularly young investors. Explanations.

At the end of December, the Paris Prosecutor’s Office, the AMF and the ACPR held a press conference to highlight a worrying problem: the growing scale of financial scams in France. With an annual loss estimated at more than 500 million euros, this phenomenon is hitting a growing number of citizens, particularly young investors.

A growing phenomenon

The statistics are clear: 3.20% of French people would have been victims of investment-related scams in 2024 (i.e. more than 1.5 million French people), compared to only 1.20% in 2021. According to a study of the AMF, these scams particularly target young men under 35 (45%), attracted by alternative investments promising quick gains. These profiles are often seduced by persuasive messages on social networks or fraudulent advertisements impersonating existing companies. Certain characteristics are frequently found in victims:

• Feeling knowledgeable about investing

• Taste for risk and for alternative investments to traditional investments

• Too much confidence in attractive offers

The most common types of scams involve crypto-assets, FOREX and fake savings accounts. Indeed, for 8 out of 10 victims, “to make good investments, you have to abandon traditional investments”.

Identity theft is also on the rise, with some even using sophisticated technologies like deepfakes to make the frauds more credible.

Significant financial losses

The average damage declared by victims amounts to 29,000 euros, but some isolated cases reach very large sums, with losses of up to 400,000 euros. Authorities are also reporting an increase in so-called “square” frauds: after trapping a victim, the scammers return under another identity, promising to help them recover their money in exchange for new payments.

A coordinated response from institutions

Faced with this threat, the authorities (Paris public prosecutor’s office, AMF and ACPR) are increasing their efforts to prevent and punish scams and are implementing actions:

• Prevention and awareness: targeted campaigns such as “Scams: it is never urgent to lose your money” are broadcast on social networks and through partnerships with media. Educational tools like “The Mysteries of Investipolis” aim to educate young investors.

• Blocking fraudulent sites: since January 2022, nearly 350 illegal sites have been blocked through legal action at the request of the AMF.

• Sanctions and investigations: authorities work together to identify and prosecute those responsible. In 2024, several influencers specializing in trading have been singled out for their promotion of unapproved platforms.

• International cooperation: exchanges of information with other countries make it possible to trace financial flows and identify criminal networks.

The authorities are calling for vigilance. Among the reflexes to adopt:

• Never give in to urgency or the pressure of an offer that is too tempting

• Check the legitimacy of contacts and companies via official lists (Orias, Regafi)

• Do not share your personal data without verification

• Be wary of advice given by online influencers or “friends”, often paid to promote questionable products